Market Newsdesk

NORTHVILLE, Mich., July 28, 2021 (GLOBE NEWSWIRE) — Gentherm (NASDAQ: THRM), a global market leader and developer of innovative thermal management technologies, today announced that the Company has received its first production vehicle award for its ClimateSense^TM technology on an all-new 2024 model year electric vehicle with a global automaker. 

ClimateSense is Gentherm’s proprietary microclimate solution comprised of advanced thermal products, integrated electronics, embedded software and a revolutionary thermo-physiology based, human-centric approach.

“Our ClimateSense microclimate technology will help OEM customers achieve their electrification goals by increasing vehicle range and energy savings, while delivering a best-in-class personalized thermal experience,” said Phil Eyler, President and CEO of Gentherm. “We are excited about this first production award for ClimateSense and the potential our technology has to address the growing needs of the electric vehicle market.”

Designed, developed, and manufactured by the Company, ClimateSense technology seamlessly integrates into the existing vehicle architecture utilizing localized convective and conductive heating and cooling solutions, to create personalized comfort while significantly reducing HVAC energy consumption. Published studies show the technology can deliver between 50 to 69 percent energy savings in cold-weather testing and 34 percent energy savings in hot weather testing, when compared to only using the existing central HVAC system.

Investor Contact

Yijing Brentano
[email protected]
248.308.1702

Media Contact

Melissa Fischer
[email protected]
248.289.9702

About Gentherm

Gentherm (NASDAQ:THRM) is a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications. Automotive products include variable temperature Climate Control Seats, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has more than 11,000 employees in facilities in the United States, Germany, Canada, China, Hungary, Japan, Korea, North Macedonia, Malta, Mexico, United Kingdom, Ukraine, and Vietnam. For more information, go to www.gentherm.com.

Forward-Looking Statements

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Gentherm Incorporated’s goals, beliefs, plans and expectations about its prospects for the future and other future events. The forward-looking statements included in this release are made as of the date hereof or as of the date specified herein and are based on management’s reasonable expectations and beliefs. Such statements are subject to a number of important assumptions, risks, uncertainties and other factors that may cause actual results or performance to differ materially from that described in or indicated by the forward-looking statements. Those risks include, but are not limited to, risks that: market acceptance of the Company’s existing or new products, and new or improved competing products developed by competitors with greater resources; shifting customer preferences, including due to the evolving use of automobiles and technology; the feasibility of Company’s development of new products on a timely, cost effective basis, or at all; The foregoing risks should be read in conjunction with the Company’s filings with the Securities and Exchange Commission (the “SEC”), including “Risk Factors”, in its most recent Annual Report on Form 10-K and subsequent SEC filings, for a discussion of these and other risks and uncertainties. In addition, the business outlook discussed in this release does not include the potential impact of any business combinations, acquisitions, divestitures, strategic investments and other significant transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results. Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

• Revenue of $749.2 million increased 9% sequentially
• Net income attributable to ChampionX of $7.3 million; adjusted net income of $23.5 million
• Adjusted EBITDA of $105.4 million
• Cash from operating activities of $60.9 million and free cash flow of $40.8 million

THE WOODLANDS, Texas, July 28, 2021 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced second quarter of 2021 results. Revenue was $749.2 million, net income attributable to ChampionX was $7.3 million, and adjusted EBITDA was $105.4 million. Income before income taxes margin was 1.5%, and adjusted EBITDA margin was 14.1%. Cash provided by operating activities was $60.9 million, and free cash flow was $40.8 million.

CEO Commentary

“We recently marked the one-year anniversary of our transformational merger and we are proud of how remarkably well our organization has performed and adapted to the dynamic and evolving energy market environment of the past year. I especially want to thank all our worldwide employees for their continued dedication and commitment to serving our customers and communities well,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the second quarter of 2021, we delivered solid results driven by our strong topline growth across our portfolio. We generated revenue of $749 million, which increased 9% sequentially, driven by robust demand growth in both our North American and international markets. We delivered adjusted EBITDA of $105 million, which represented a sequential increase of 12%. Our teams executed well navigating the raw material and logistics inflation challenges to deliver strong results in the second quarter.

“We once again demonstrated our strong free cash flow profile as we generated free cash flow of $41 million and we further strengthened our balance sheet by repaying $62 million of debt during the quarter. We ended the second quarter with $592 million of liquidity, including $239 million of cash and $353 million of available capacity on our revolving credit facility.

“Our team continues to execute well on merger integration. We exited the second quarter at a $103 million run rate and we are well positioned to deliver the full targeted cost synergies of $125 million within 24 months of the merger closing.

“As we look to the third quarter, we expect our topline momentum to continue, driven by demand growth in both our international operations and our shorter-cycle North American businesses. We fully expect to deliver healthy margin improvement in the second half as continued volume improvements, price increase realization and cost synergy delivery offset raw material cost inflation. We remain highly confident to exit this year with a higher margin rate than our 2020 exit rate. On a consolidated basis, in the third quarter we expect revenue to be between $765 million and $805 million, with each of our businesses contributing to the sequential growth. We expect adjusted EBITDA of $119 million to $125 million.

“We are pleased by the positive demand momentum in our businesses in the second half of this year and beyond, and we remain committed to our strategic priorities, disciplined operating model and rigorous capital allocation approach. We are excited about the progress we are making in building our emissions management portfolio. ChampionX is well positioned to be a long-term winner in the evolving energy industry, and it is a privilege for me to lead such a strong and motivated team.”

Production Chemical Technologies

Production Chemical Technologies revenue in the second quarter of 2021 was $447.0 million, an increase of $34.7 million, or 8%, sequentially, due to higher international volumes and continued sales increases in our North America business.

Segment operating profit was $33.9 million and adjusted segment EBITDA was $61.7 million. Segment operating profit margin was 7.6%. Adjusted segment EBITDA margin was 13.8%, an increase of 20 basis points, sequentially, due to the aforementioned higher sales volumes, partially offset by certain raw materials inflation.

Production & Automation Technologies

Production & Automation Technologies revenue in the second quarter of 2021 was $188.2 million, an increase of $21.3 million, or 13%, sequentially, due to continued positive demand momentum for our shorter-cycle North American land-oriented product lines.

Revenue from digital products was $32.4 million in the second quarter of 2021, an increase of $3.4 million, or 12%, compared to $29.0 million in the first quarter of 2021.

Segment operating profit was $12.3 million, and adjusted segment EBITDA was $37.9 million. Segment operating profit margin was 6.5%. Adjusted segment EBITDA margin was 20.1%, a decrease of 120 basis points, sequentially, due to certain raw materials inflation and unfavorable product mix.

Drilling Technologies

Drilling Technologies revenue in the second quarter of 2021 was $37.6 million, an increase of $2.6 million, or 7%, sequentially, due to the continued increase in U.S. land drilling activity.

Segment operating profit was $3.9 million, and adjusted segment EBITDA was $8.5 million. Segment operating profit margin was 10.3%. Adjusted segment EBITDA margin was 22.6%, an increase of 180 basis points, sequentially, due to higher volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the second quarter of 2021 was $33.2 million, an increase of $3.3 million, or 11%, sequentially, driven by higher U.S. well construction and completion activity.

Segment operating loss was $2.6 million, and adjusted segment EBITDA was $0.2 million. Segment operating loss margin was 7.8%. Adjusted segment EBITDA margin was 0.6%, an increase of 250 basis points, sequentially, due to higher volumes.

Other Business Highlights

• Chemical Technologies saw positive signs of emerging activity in international markets, particularly in the Latin America and Middle East & North Africa regions.
• Production Chemical Technologies delivered strong customer contract wins in the Canadian oil sands and in Sub-Saharan Africa, based on technical and service differentiation.
• Production Chemical Technologies experienced U.S. land market strength, driven by digital and technical differentiation in midstream markets, continued innovation (e.g., our new paraffin-targeted chemistries which are driving operational improvements for E&P operators in West Texas), and market share gains.
• UNBRIDLED ESP Systems delivered two new customer wins in the Permian Basin, one with an active major oil company and the other with a Permian-focused private operator for which we were awarded 50% of all new well ESP installations. These awards came subsequent to the customers visiting our Permian Basin Operations Center and experiencing our ChampionX Artificial Lift continuous improvement culture and programs.
• ChampionX’s UNBRIDLED ESP Systems launches its SMARTEN PurePower Pro in August, which is a cost-effective solution which dramatically reduces the harmonic distortion that ESP operations have on local power grids. The technology is especially well suited for unconventional operations where rapidly declining production rates result in lower power load on equipment over time because it automatically adjusts as the power load changes and reduces power requirements by as much as 7% for fields produced with ESPs. The equipment can be remotely monitored and optimized, thus reducing operating costs and HSE exposure.
• Production & Automation Technologies was awarded 12 complete rod lift solutions packages, inclusive of long-stroke units, high-volume pumps, and automation for a major integrated oil and gas producer in the Vaca Muerta play in Argentina.
• During the second quarter, 79% of Drilling Technologies revenue was generated from products that were less than three years old.
• During the second quarter, ChampionX completed an investment in QLM Technology, which has developed a revolutionary quantum gas camera with a unique and cost-effective ability to detect, visualize and quantify emissions of methane. Coupled with our acquisition of Scientific Aviation, Inc., ChampionX is making progress on its strategic objective of evolving the portfolio for sustained growth and is helping organizations in the energy industry achieve their net zero emissions goals through mitigation of sources.
• In July, ChampionX completed the acquisition of Scientific Aviation, Inc., which is an industry leader in developing methods and technologies for fast, accurate, and cost-effective solutions for methane leak detection, emissions quantification and air quality research, helping customers and other organizations to achieve their greenhouse gas emissions reduction goals.

Conference Call Details

ChampionX Corporation will host a conference call on Thursday, July 29, 2021, to discuss its second quarter 2021 financial results. The call will begin at 9:00 a.m. Eastern Time. Presentation materials that supplement the conference call are available on ChampionX’s website at investors.championx.com.

To listen to the call via a live webcast, please visit ChampionX’s website at investor.championx.com. The call will also be available by dialing 1-888-424-8151 in the United States and Canada or 1-847-585-4422 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference ChampionX conference call number 8113563.

A replay of the conference call will be available on ChampionX’s website or at ChampionXSecondQuarter2021CallReplay Enter passcode 50190035.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the accompanying financial tables.

This press release also contains certain forward-looking non-GAAP financial measures, including adjusted EBITDA. Due to the forward-looking nature of the aforementioned non-GAAP financial measure, management cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as net income. Accordingly, we are unable to present a quantitative reconciliation of such forward looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures. Amounts excluded from these non-GAAP measures in future periods could be significant. Management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance.

About ChampionX

ChampionX is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. ChampionX’s products provide efficient functioning throughout the lifecycle of a well with a focus on the production phase of wells. To learn more about ChampionX, visit our website at www.championX.com.

Forward-Looking Statements

This news release contains statements relating to future actions and results, which are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, ChampionX’s market position and growth opportunities.  Forward-looking statements include statements related to ChampionX’s expectations regarding the performance of the business, financial results, liquidity and capital resources of ChampionX. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, changes in economic, competitive, strategic, technological, tax, regulatory or other factors that affect the operations of ChampionX’s businesses. You are encouraged to refer to the documents that ChampionX files from time to time with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in ChampionX’s other filings with the SEC. Readers are cautioned not to place undue reliance on ChampionX’s forward-looking statements. Forward-looking statements speak only as of the day they are made and ChampionX undertakes no obligation to update any forward-looking statement, except as required by applicable law.

        
Investor Contact: Byron Pope
[email protected]
281-602-0094

Media Contact: John Breed
[email protected]
281-403-5751

CHAMPIONX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(UNAUDITED)

	Three Months Ended														Six Months Ended
	June 30,				March 31,					June 30,					June 30,
(in thousands, except per share amounts)	2021				2021					2020					2021					2020
Revenue	$	749,172			$	684,888				$	298,914				$	1,434,060				$	560,348
Cost of goods and services	569,167				522,556					266,684					1,091,723					445,779
Gross profit	180,005				162,332					32,230					342,337					114,569
Selling, general and administrative expense	152,341				143,478					130,657					295,819					208,800
Goodwill and long-lived asset impairment	—				—					—					—					657,251
Interest expense, net	14,064				13,971					11,262					28,035					20,301
Other (income) expense, net	2,251				(1,936		)			312					315					(1,321		)
Income (loss) before income taxes	11,349				6,819					(110,001		)			18,168					(770,462		)
Provision for (benefit from) income taxes	3,563				2,782					(954		)			6,345					(27,960		)
Net income (loss)	7,786				4,037					(109,047		)			11,823					(742,502		)
Less: Net income (loss) attributable to noncontrolling interest	536				(1,735		)			598					(1,199		)			871
Net income (loss) attributable to ChampionX	$	7,250			$	5,772				$	(109,645	)			$	13,022				$	(743,373	)
Earnings (loss) per share attributable to ChampionX:
Basic	$	0.04			$	0.03				$	(0.95	)			$	0.06				$	(7.72	)
Diluted	$	0.03			$	0.03				$	(0.95	)			$	0.06				$	(7.72	)
Weighted-average shares outstanding:
Basic	201,467				200,580					115,149					201,063					96,313
Diluted	208,541				207,271					115,149					207,939					96,313

CHAMPIONX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands)	June 30, 2021				December 31, 2020
ASSETS
Cash and cash equivalents	$	238,995			$	201,421
Receivables, net	576,090				559,545
Inventories, net	467,594				430,112
Prepaid expenses and other current assets	67,360				74,767
Total current assets	1,350,039				1,265,845
Property, plant and equipment, net	818,928				854,536
Goodwill	690,134				680,594
Intangible assets, net	436,027				479,009
Other non-current assets	190,882				195,792
Total assets	$	3,486,010			$	3,475,776
LIABILITIES
Current portion of long-term debt	$	26,850			$	26,850
Accounts payable	391,213				299,666
Other current liabilities	268,515				296,044
Total current liabilities	686,578				622,560
Long-term debt	838,826				905,764
Other long-term liabilities	301,649				334,877
EQUITY
ChampionX stockholders’ equity	1,674,315				1,625,971
Noncontrolling interest	(15,358		)		(13,396		)
Total liabilities and equity	$	3,486,010			$	3,475,776

CHAMPIONX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended June 30,
(in thousands)	2021				2020
Cash flows from operating activities:
Net income (loss)	$	11,823			$	(742,502	)
Depreciation	76,648				58,139
Amortization	43,739				26,274
Goodwill and long-lived asset impairment	—				657,251
Receivables	(18,706		)		77,777
Inventories	(41,586		)		24,794
Accounts payable	92,997				(30,331		)
Leased assets	(1,609		)		(9,311		)
Other	(12,168		)		15,942
Net cash provided by operating activities	151,138				78,033
Cash flows from investing activities:
Capital expenditures	(45,680		)		(19,322		)
Acquisitions, net of cash acquired	—				57,588
Proceeds from sale of fixed assets	2,482				1,066
Net cash (used for) provided by investing activities	(43,198		)		39,332
Cash flows from financing activities:
Proceeds from long-term debt	—				125,000
Repayment of long-term debt	(71,113		)		(125,000		)
Debt issuance costs	—				(4,356		)
Other	1,370				(5,614		)
Net cash used for financing activities	(69,743		)		(9,970		)
Effect of exchange rate changes on cash and cash equivalents	(623		)		(790		)
Net increase (decrease) in cash and cash equivalents	37,574				106,605
Cash and cash equivalents at beginning of period	201,421				35,290
Cash and cash equivalents at end of period	$	238,995			$	141,895

CHAMPIONX CORPORATION

BUSINESS SEGMENT DATA

(UNAUDITED)

	Three Months Ended															Six Months Ended
	June 30,					March 31,					June 30,					June 30,
(in thousands)	2021					2021					2020					2021					2020
Segment revenue:
Production Chemical Technologies	$	447,049				$	412,371				$	136,002				$	859,420				$	136,002
Production & Automation Technologies	188,173					166,845					114,741					355,018					320,220
Drilling Technologies	37,589					34,994					20,948					72,583					76,903
Reservoir Chemical Technologies	33,222					29,891					9,306					63,113					9,306
Corporate and other	43,139					40,787					17,917					83,926					17,917
Total revenue	$	749,172				$	684,888				$	298,914				$	1,434,060				$	560,348
Income (loss) before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	33,871				$	30,357				$	9,922				$	64,228				$	9,922
Production & Automation Technologies	12,292					5,362					(37,168		)			17,654					(685,759		)
Drilling Technologies	3,868					6,386					(3,811		)			10,254					7,548
Reservoir Chemical Technologies	(2,594		)			(3,228		)			(2,811		)			(5,822		)			(2,811		)
Total segment operating profit (loss)	47,437					38,877					(33,868		)			86,314					(671,100		)
Corporate and other	22,024					18,087					64,871					40,111					79,061
Interest expense, net	14,064					13,971					11,262					28,035					20,301
Income (loss) before income taxes	$	11,349				$	6,819				$	(110,001	)			$	18,168				$	(770,462	)
Operating profit margin / income (loss) before income taxes margin:
Production Chemical Technologies	7.6			%		7.4			%		7.3			%		7.5			%		7.3			%
Production & Automation Technologies	6.5			%		3.2			%		(32.4		)	%		5.0			%		(214.2		)	%
Drilling Technologies	10.3			%		18.2			%		(18.2		)	%		14.1			%		9.8			%
Reservoir Chemical Technologies	(7.8		)	%		(10.8		)	%		(30.2		)	%		(9.2		)	%		(30.2		)	%
ChampionX Consolidated	1.5			%		1.0			%		(36.8		)	%		1.3			%		(137.5		)	%
Adjusted EBITDA
Production Chemical Technologies	$	61,708				$	56,025				$	22,431				$	117,733				$	22,431
Production & Automation Technologies	37,903					35,512					14,492					73,415					54,524
Drilling Technologies	8,494					7,292					1,800					15,786					17,570
Reservoir Chemical Technologies	202					(558		)			(314		)			(356		)			(314		)
Corporate and other	(2,926		)			(4,025		)			(3,948		)			(6,951		)			(6,492		)
Adjusted EBITDA	$	105,381				$	94,246				$	34,461				$	199,627				$	87,719
Adjusted EBITDA margin
Production Chemical Technologies	13.8			%		13.6			%		16.5			%		13.7			%		16.5			%
Production & Automation Technologies	20.1			%		21.3			%		12.6			%		20.7			%		17.0			%
Drilling Technologies	22.6			%		20.8			%		8.6			%		21.7			%		22.8			%
Reservoir Chemical Technologies	0.6			%		(1.9		)	%		(3.4		)	%		(0.6		)	%		(3.4		)	%
ChampionX Consolidated	14.1			%		13.8			%		11.5			%		13.9			%		15.7			%

CHAMPIONX CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

	Three Months Ended															Six Months Ended
	June 30,					March 31,					June 30,					June 30,
(in thousands)	2021					2021					2020					2021					2020
Net income (loss) attributable to ChampionX	$	7,250				$	5,772				$	(109,645	)			$	13,022				$	(743,373	)
Pre-tax adjustments:
Merger integration costs	12,665					12,190					5,705					24,855					9,110
Restructuring and other related charges	3,775					4,256					12,128					8,031					14,894
Intellectual property defense	2,790					(1,009		)			181					1,781					392
Acquisition-related adjustments (1)	(3,512		)			(3,512		)			5,831					(7,024		)			5,831
Acquisition costs	—					530					53,047					530					61,150
Loss on extinguishment of debt	3,305					—					—					3,305					—
Separation and supplemental benefit costs	1,559					—					(317		)			1,559					51
Professional fees related to material weakness remediation (2)	—					—					2,044					—					4,788
Goodwill and long-lived asset impairment (3)	—					—					—					—					657,251
Tax impact of adjustments	(4,322		)			(2,616		)			(18,208		)			(6,938		)			(57,330		)
Adjusted net income (loss) attributable to ChampionX	23,510					15,611					(49,234		)			39,121					(47,236		)
Tax impact of adjustments	4,322					2,616					18,208					6,938					57,330
Net income (loss) attributable to noncontrolling interest	536					(1,735		)			598					(1,199		)			871
Depreciation and amortization	59,386					61,001					54,581					120,387					84,413
Provision for (benefit from) income taxes	3,563					2,782					(954		)			6,345					(27,960		)
Interest expense, net	14,064					13,971					11,262					28,035					20,301
Adjusted EBITDA	$	105,381				$	94,246				$	34,461				$	199,627				$	87,719

_______________________

(1)  Includes revenue associated with the amortization of a liability established as part of the Merger, representing unfavorable terms under the Cross Supply Agreement. For the three months ended June 30, 2020, in association with the Merger of legacy ChampionX, we recorded an increase to the fair value of inventory which is subsequently amortized to cost of sales over the period that the related product is sold.
(2)  Includes professional fees related to the remediation of material weaknesses identified during 2019.
(3) Represents charges for goodwill and long-lived asset impairments in our Production & Automation Technologies segment.

	Three Months Ended															Six Months Ended
	June 30,					March 31,					June 30,					June 30,
(in thousands)	2021					2021					2020					2021					2020
Diluted earnings (loss) per share attributable to ChampionX	$	0.03				$	0.03				$	(0.95	)			$	0.06				$	(7.72	)
Per share adjustments:
Merger integration costs	0.06					0.06					0.05					0.12					0.10
Restructuring and other related charges	0.02					0.02					0.11					0.04					0.15
Intellectual property defense	0.01					(0.01		)			—					0.01					—
Acquisition-related adjustments	(0.02		)			(0.01		)			0.05					(0.03		)			0.06
Acquisition costs	—					—					0.46					—					0.63
Loss on extinguishment of debt	0.02					—					—					0.02					—
Separation and supplemental benefit costs	0.01					—					—					0.01					—
Professional fees related to material weakness remediation and impairment analysis	—					—					0.01					—					0.05
Goodwill and long-lived asset impairment	—					—					—					—					6.83
Tax impact of adjustments	(0.02		)			(0.01		)			(0.16		)			(0.04		)			(0.59		)
Adjusted diluted earnings (loss) per share attributable to ChampionX	$	0.11				$	0.08				$	(0.43	)			0.19					(0.49		)

Free Cash Flow

	Three Months Ended															Six Months Ended
	June 30,					March 31,					June 30,					June 30,
(in thousands)	2021					2021					2020					2021					2020
Free Cash Flow
Cash provided by operating activities	$	60,924				$	90,214				$	48,811				$	151,138				$	78,033
Less: Capital expenditures	(20,101		)			(25,579		)			(11,855		)			(45,680		)			(19,322		)
Free cash flow	$	40,823				$	64,635				$	36,956				$	105,458				$	58,711
Cash From Operating Activities to Revenue Ratio
Cash provided by operating activities	$	60,924				$	90,214				$	48,811				$	151,138				$	78,033
Revenue	$	749,172				$	684,888				$	298,914				$	1,434,060				$	560,348
Cash from operating activities to revenue ratio	8		%			13		%			16		%			11		%			14		%
Free Cash Flow to Revenue Ratio
Free cash flow	$	40,823				$	64,635				$	36,956				$	105,458				$	58,711
Revenue	$	749,172				$	684,888				$	298,914				$	1,434,060				$	560,348
Free cash flow to revenue ratio	5		%			9		%			12		%			7		%			10		%
Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	40,823				$	64,635				$	36,956				$	105,458				$	58,711
Adjusted EBITDA	$	105,381				$	94,246				$	34,461				$	199,627				$	87,719
Free cash flow to adjusted EBITDA ratio	39		%			69		%			107		%			53		%			67		%

 

SAN FRANCISCO, July 28, 2021 (GLOBE NEWSWIRE) — SuRo Capital Corp. (“SuRo Capital” or the “Company”) (Nasdaq:SSSS) today announced that it will report its financial results for the quarter ended June 30, 2021 after the close of the U.S. market on Wednesday, August 4, 2021.

Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET). The conference call access number for U.S. participants is 323-794-2093, and the conference call access number for participants outside the U.S. is 866-548-4713. The conference ID number for both access numbers is 8107228. Additionally, interested parties can listen to a live webcast of the call from the “Investor Relations” section of SuRo Capital’s website at www.surocap.com. An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on August 11, 2021 by dialing 888-203-1112 (U.S.) or +1 719-457-0820 (International) and using conference ID number 8107228.

About SuRo Capital Corp.

SuRo Capital Corp. (Nasdaq:SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in San Francisco, CA. Connect with the company on Twitter, LinkedIn, and at www.surocap.com.

Contact

SuRo Capital Corp.
(650) 235-4769
[email protected]

Media Contact

Bill Douglass
Gotham Communications, LLC
[email protected]

HAMPTON, N.H., July 28, 2021 (GLOBE NEWSWIRE) — Unitil Corporation (NYSE:UTL) (www.unitil.com) today announced that its Board of Directors declared the regular quarterly dividend on the Company’s common stock of $0.38 per share, payable August 27, 2021, to shareholders of record on August 13, 2021. This quarterly dividend results in a current effective annualized dividend rate of $1.52 per share.

About Unitil Corporation

Unitil Corporation provides energy for life by safely and reliably delivering natural gas and electricity in New England. We are committed to the communities we serve and to developing people, business practices, and technologies that lead to the delivery of dependable, more efficient energy. Unitil Corporation is a public utility holding company with operations in Maine, New Hampshire and Massachusetts. Together, Unitil’s operating utilities serve approximately 107,100 electric customers and 85,600 natural gas customers. For more information about our people, technologies, and community involvement please visit www.unitil.com.

For more information please contact:                                                 

Todd Diggins – Investor Relations
Phone: 603-773-6504
Email: [email protected]

Alec O’Meara – Media Relations
Phone: 603-773-6404
Email: [email protected]

NEW YORK, July 28, 2021 (GLOBE NEWSWIRE) — Latch, Inc. (NASDAQ: LTCH) (“Latch” or the “Company”), maker of LatchOS, the full-building enterprise software-as-a-service (SaaS) platform, today announced that it will report financial results for the second quarter of 2021 on Thursday, August 12^th, 2021 after the market closes.

Latch will host a conference call and live webcast to discuss those financial results for investors and analysts at 5:00 p.m. Eastern Time on Thursday, August 12^th, 2021. To access the conference call, dial (833) 562-0132 for the U.S. or Canada, or (661) 567-1107 for callers outside the U.S. or Canada, with Conference ID: 7130858. The webcast will be available live on the Investor Relations section of the Company’s website at https://www.latch.com/investors, and a recording will be archived and accessible at https://www.latch.com/investors.

About Latch, Inc.

Latch makes spaces better places to live, work, and visit through a system of software, devices, and services. More than one in ten new apartments in the U.S. are currently being built with Latch products, serving customers in more than 39 states through its flagship full-building operating system, LatchOS. For more information, please visit https://www.latch.com.

CONTACTS

Latch

Investors
[email protected]

Media
Daniel Teweles
[email protected]

• 
  Second quarter comparable store sales increase of 9.9%
  
• 
  16% two-year compound growth in second quarter revenue
  
• 
  17% increase in second quarter diluted earnings per share, year-to-date increase of 39%
  
  

SPRINGFIELD, Mo., July 28, 2021 (GLOBE NEWSWIRE) — O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its second quarter ended June 30, 2021, and announced the future retirement and leadership succession plan for Jeff Shaw, COO and Co-President.

2



^nd



Quarter Financial Results

Greg Johnson, O’Reilly’s CEO and Co-President, commented, “We are pleased to report another outstanding quarter, especially as our Team faced very difficult comparisons to our extremely strong results in the second quarter last year. Team O’Reilly continues to deliver consistently outstanding service to our customers and produce record-breaking financial results, highlighted by our 9.9% increase in comparable store sales for the quarter, on top of a 16.2% increase in the prior year. We are also proud of our Team’s ability to deliver profitable growth, leveraging our strong top-line results to drive second quarter diluted earnings per share of $8.33, which was a 17% increase over the prior year and on top of the 57% increase in earnings per share we delivered in the second quarter of 2020. I would like to take this opportunity to thank our over 79,000 Team Members for their incredible hard work and unwavering dedication to safety, while providing excellent customer service, which has been so crucial to our customers during the pandemic.”

Sales for the second quarter ended June 30, 2021, increased $374 million, or 12%, to $3.47 billion from $3.09 billion for the same period one year ago. Gross profit for the second quarter increased 12% to $1.83 billion (or 52.7% of sales) from $1.64 billion (or 53.0% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 14% to $1.03 billion (or 29.7% of sales) from $901 million (or 29.1% of sales) for the same period one year ago. Operating income for the second quarter increased 8% to $796 million (or 23.0% of sales) from $736 million (or 23.8% of sales) for the same period one year ago.

Net income for the second quarter ended June 30, 2021, increased $54 million, or 10%, to $585 million (or 16.9% of sales) from $532 million (or 17.2% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 17% to $8.33 on 70 million shares versus $7.10 on 75 million shares for the same period one year ago.

Year-to-Date Financial Results

Mr. Johnson added, “Our Team’s unwavering commitment to our customers in the first half of 2021 drove a 16.5% increase in comparable store sales, a 28% increase in operating profit dollars and a 39% increase in diluted earnings per share. Our continued strong sales results in 2021 are the product of strong execution of our dual market strategy, combined with a beneficial industry backdrop, augmented by favorable weather trends, and the significant positive impact from the last round of government stimulus starting at the end of our first quarter. Even as the tailwind from the stimulus benefits moderated in May and June, we have remained very pleased with our Team’s ability to sustain year-over-year increases in sales volumes despite the very difficult comparisons to the prior year. Our better-than-expected sales volumes in May and June have continued thus far in July. As a result of our second quarter performance and strong start to our third quarter, coupled with our confidence in Team O’Reilly’s ability to provide industry-leading customer service, we are raising our full-year 2021 guidance for comparable store sales from a range of 1% to 3% to a range of 5% to 7%. We are also increasing our full-year diluted earnings per share guidance to a range of $26.80 to $27.00, which represents an increase of $2.05 at the midpoint from our previously provided guidance.”

Sales for the first six months of 2021 increased $988 million, or 18%, to $6.56 billion from $5.57 billion for the same period one year ago. Gross profit for the first six months of 2021 increased 18% to $3.47 billion (or 52.9% of sales) from $2.93 billion (or 52.7% of sales) for the same period one year ago. SG&A for the first six months of 2021 increased 12% to $1.98 billion (or 30.2% of sales) from $1.77 billion (or 31.8% of sales) for the same period one year ago. Operating income for the first six months of 2021 increased 28% to $1.49 billion (or 22.7% of sales) from $1.16 billion (or 20.8% of sales) for the same period one year ago.

Net income for the first six months of 2021 increased $255 million, or 31%, to $1.09 billion (or 16.6% of sales) from $832 million (or 14.9% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2021 increased 39% to $15.39 on 71 million shares versus $11.06 on 75 million shares for the same period one year ago.

2



^nd



Quarter Comparable Store Sales Results

Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores and sales to Team Members, as well as sales from Leap Day for the six months ended June 30, 2020. Online sales, resulting from ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year, are included in the comparable store sales calculation. Comparable store sales increased 9.9% for the second quarter ended June 30, 2021, on top of 16.2% for the same period one year ago. Comparable stores sales increased 16.5% for the six months ended June 30, 2021, on top of 7.5% for the same period one year ago.

Share Repurchase Program

During the second quarter ended June 30, 2021, the Company repurchased 0.7 million shares of its common stock, at an average price per share of $537.25, for a total investment of $400 million. During the first six months of 2021, the Company repurchased 2.2 million shares of its common stock, at an average price per share of $479.69, for a total investment of $1.06 billion. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 0.2 million shares of its common stock, at an average price per share of $591.06, for a total investment of $114 million. The Company has repurchased a total of 83.4 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $185.14, for a total aggregate investment of $15.45 billion.   As of the date of this release, the Company had approximately $1.80 billion remaining under its current share repurchase authorizations.

Updated Full-Year 2021 Guidance

The Company still anticipates potentially significant volatility in its results, driven by the ongoing uncertainty related to the pandemic, and will update full-year guidance during 2021, as appropriate, and if needed. The table below outlines the Company’s updated guidance for selected full-year 2021 financial data:

		For the Year Ending
		December 31, 2021
Comparable store sales		5% to 7%
Total revenue		$12.3 billion to $12.6 billion
Gross profit as a percentage of sales		52.2% to 52.7%
Operating income as a percentage of sales		20.5% to 20.9%
Effective income tax rate		23.0%
Diluted earnings per share (1)		$26.80 to $27.00
Net cash provided by operating activities		$2.2 billion to $2.7 billion
Capital expenditures		$550 million to $650 million
Free cash flow (2)		$1.5 billion to $1.8 billion

⁽¹⁾ Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.

⁽²⁾ Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:

			For the Year Ending
(in millions)			December 31, 2021
Net cash provided by operating activities			$	2,245		to		$	2,670
Less:	Capital expenditures			550		to			650
	Excess tax benefit from share-based compensation payments			15		to			20
	Investment in tax credit equity investments			180		to			200
Free cash flow			$	1,500		to		$	1,800

Jeff Shaw, COO and Co-President, Retirement and Leadership Succession

“After more than 33 years of dedicated service to O’Reilly, Jeff Shaw has decided to retire, effective in early 2022,” stated Mr. Johnson. “Jeff is an outstanding leader and mentor, and he has been a critical part of our Company’s incredible success and profitable growth during his tenure. He is extremely passionate about providing consistent, top-notch customer service and has relentlessly perpetuated this focus in every member of his Team. Jeff has been a champion of executing the Company’s ‘promote from within’ philosophy, and he has personally trained and mentored many of O’Reilly’s current senior leadership team, including identifying and preparing for his own retirement and succession. I would like to express my sincere appreciation to Jeff for his incredible contributions to O’Reilly’s success, and we all wish Jeff and his family a very happy and well deserved retirement.”

Mr. Shaw has been an O’Reilly Team Member for over 33 years, beginning his career as a Parts Specialist and progressing through the roles of Store Manager, District Manager, Regional Manager, Divisional Vice President, Vice President of the Southern Division, Vice President of Sales and Operations, Senior Vice President of Sales and Operations, Executive Vice President of Store Operations and Sales, and Co-President, and was promoted to his current role of COO and Co-President on May 8, 2018. In his current role, Mr. Shaw’s primary areas of responsibility are Store Operations, Sales, Distribution Operations and International Operations.

Mr. Johnson continued, “Thanks to Jeff’s focus on succession planning, we are very pleased to announce that Brad Beckham, O’Reilly’s Executive Vice President of Store Operations and Sales, will be promoted to the position of Executive Vice President and Chief Operating Officer at the time of Jeff’s retirement. Brad has been an O’Reilly Team Member for over 24 years, beginning his career as a Parts Specialist and, through his dedication and hard work, has been promoted up through the organization. Brad is a very experienced operator and exceptional leader and shares Jeff’s passion for providing excellent customer service, and I am confident he is well prepared to help lead our Company to success long into the future.”

At the time of Mr. Shaw’s retirement, his leadership and operational responsibilities will be transitioned to Mr. Beckham and to Brent Kirby, O’Reilly’s Executive Vice President of Supply Chain.

Jeff Shaw commented, “It has been an honor to have worked with so many great people at O’Reilly for these past 30 plus years, and I am extremely grateful for all of the opportunities provided to me by our Company during my career. While I will miss working with the Team every day, I could not be more pleased to have been a part of the Company’s past success, and I am extremely confident that Brad is ready to step into his new role. Brad is an extremely talented and well respected leader and will ensure O’Reilly’s focus on providing top-notch service to our customers will continue long into the future.”

Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.

Earnings Conference Call Information

The Company will host a conference call on Thursday, July 29, 2021, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (703) 375-5524 and the conference call identification number is 8385407. A replay of the conference call will be available on the Company’s website through Thursday, July 28, 2022.

About O’Reilly Automotive, Inc.

O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities and other programs. As of June 30, 2021, the Company operated 5,710 stores in 47 U.S. states and 22 stores in Mexico.

Forward-Looking Statements

The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, the COVID-19 pandemic or other public health crises; the economy in general; inflation; consumer debt levels; product demand; the market for auto parts; competition; weather; tariffs; availability of key products; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; information security and cyber-attacks; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2020, and subsequent Securities and Exchange Commission filings for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

For further information contact:	Investor & Media Contacts
	Mark Merz (417) 829-5878
	Eric Bird (417) 868-4259

O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

		June 30, 2021				June 30, 2020				December 31, 2020
		(Unaudited)				(Unaudited)				(Note)
Assets
Current assets:
Cash and cash equivalents		$	631,618			$	872,423			$	465,640
Accounts receivable, net			273,148				243,660				229,679
Amounts receivable from suppliers			113,174				86,513				100,615
Inventory			3,647,413				3,528,683				3,653,195
Other current assets			72,994				53,206				50,658
Total current assets			4,738,347				4,784,485				4,499,787
Property and equipment, at cost			6,767,596				6,403,936				6,559,911
Less: accumulated depreciation and amortization			2,603,442				2,365,453				2,464,993
Net property and equipment			4,164,154				4,038,483				4,094,918
Operating lease, right-of-use assets			2,028,329				1,926,270				1,995,127
Goodwill			881,207				872,997				881,030
Other assets, net			137,296				106,300				125,780
Total assets		$	11,949,333			$	11,728,535			$	11,596,642
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable		$	4,583,570			$	3,936,400			$	4,184,662
Self-insurance reserves			118,259				90,890				109,199
Accrued payroll			129,025				107,116				88,875
Accrued benefits and withholdings			221,382				140,446				242,724
Income taxes payable			29,776				91,797				16,786
Current portion of operating lease liabilities			333,624				318,601				322,778
Other current liabilities			355,976				336,886				297,393
Total current liabilities			5,771,612				5,022,136				5,262,417
Long-term debt			3,825,177				4,127,397				4,123,217
Operating lease liabilities, less current portion			1,747,267				1,652,284				1,718,691
Deferred income taxes			177,118				155,530				155,899
Other liabilities			210,465				182,088				196,160
Shareholders’ equity:
Common stock, $0.01 par value:
Authorized shares – 245,000,000
Issued and outstanding shares –
69,132,589 as of June 30, 2021, and
74,097,706 as of June 30, 2020, and
71,123,109 as of December 31, 2020			691				741				711
Additional paid-in capital			1,295,363				1,289,976				1,280,841
Retained deficit			(1,075,769	)			(679,506	)			(1,139,139	)
Accumulated other comprehensive loss			(2,591	)			(22,111	)			(2,155	)
Total shareholders’ equity			217,694				589,100				140,258
Total liabilities and shareholders’ equity		$	11,949,333			$	11,728,535			$	11,596,642

Note: The balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

		For the Three Months Ended								For the Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Sales		$	3,465,601			$	3,091,595			$	6,556,500			$	5,568,082
Cost of goods sold, including warehouse and distribution expenses			1,639,223				1,454,415				3,089,327				2,634,996
Gross profit			1,826,378				1,637,180				3,467,173				2,933,086
Selling, general and administrative expenses			1,030,795				900,690				1,980,485				1,773,035
Operating income			795,583				736,490				1,486,688				1,160,051
Other income (expense):
Interest expense			(37,657	)			(41,723	)			(75,163	)			(81,109	)
Interest income			456				635				993				1,310
Other, net			2,952				5,008				4,643				(182	)
Total other expense			(34,249	)			(36,080	)			(69,527	)			(79,981	)
Income before income taxes			761,334				700,410				1,417,161				1,080,070
Provision for income taxes			175,883				168,743				330,101				247,965
Net income		$	585,451			$	531,667			$	1,087,060			$	832,105
Earnings per share-basic:
Earnings per share		$	8.41			$	7.16			$	15.53			$	11.15
Weighted-average common shares outstanding – basic			69,618				74,205				69,997				74,611
Earnings per share-assuming dilution:
Earnings per share		$	8.33			$	7.10			$	15.39			$	11.06
Weighted-average common shares outstanding – assuming dilution			70,264				74,833				70,640				75,246

O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

		For the Six Months Ended
		June 30,
		2021				2020
Operating activities:
Net income		$	1,087,060			$	832,105
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles			158,917				151,873
Amortization of debt discount and issuance costs			2,207				2,152
Deferred income taxes			21,922				14,987
Share-based compensation programs			12,575				11,480
Other			1,382				1,906
Changes in operating assets and liabilities:
Accounts receivable			(45,359	)			(34,966	)
Inventory			6,357				(78,086	)
Accounts payable			398,785				334,503
Income taxes payable			12,408				210,855
Other			56,578				112,269
Net cash provided by operating activities			1,712,832				1,559,078
Investing activities:
Purchases of property and equipment			(222,607	)			(244,471	)
Proceeds from sale of property and equipment			4,566				4,846
Investment in tax credit equity investments			(1,768	)			(95,292	)
Other			(1,083	)			(311	)
Net cash used in investing activities			(220,892	)			(335,228	)
Financing activities:
Proceeds from borrowings on revolving credit facility			—				1,162,000
Payments on revolving credit facility			—				(1,423,000	)
Proceeds from the issuance of long-term debt			—				499,795
Principal payments on long-term debt			(300,000	)			—
Payment of debt issuance costs			(3,299	)			(3,840	)
Repurchases of common stock			(1,064,189	)			(651,027	)
Net proceeds from issuance of common stock			41,921				25,593
Other			(313	)			(253	)
Net cash used in financing activities			(1,325,880	)			(390,732	)
Effect of exchange rate changes on cash			(82	)			(1,101	)
Net increase in cash and cash equivalents			165,978				832,017
Cash and cash equivalents at beginning of the period			465,640				40,406
Cash and cash equivalents at end of the period		$	631,618			$	872,423
Supplemental disclosures of cash flow information:
Income taxes paid		$	292,673			$	20,187
Interest paid, net of capitalized interest			76,788				73,091

O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

SELECTED FINANCIAL INFORMATION
(Unaudited)

			For the Twelve Months Ended
			June 30,
Adjusted Debt to EBITDAR:			2021			2020
(In thousands, except adjusted debt to EBITDAR ratio)
GAAP debt			$	3,825,177		$	4,127,397
Add:	Letters of credit			84,045			51,551
	Discount on senior notes			4,700			3,295
	Debt issuance costs			20,123			19,308
	Six-times rent expense			2,182,596			2,073,180
Adjusted debt			$	6,116,641		$	6,274,731
GAAP net income			$	2,007,257		$	1,548,314
Add:	Interest expense			155,180			152,255
	Provision for income taxes			596,239			442,962
	Depreciation and amortization			321,679			290,473
	Share-based compensation expense			23,842			22,386
	Rent expense (i)			363,766			345,530
EBITDAR			$	3,467,963		$	2,801,920
Adjusted debt to EBITDAR				1.76			2.24

⁽ⁱ⁾ The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2021 and 2020 (in thousands):

	Total lease cost, per ASC 842, for the twelve months ended June 30, 2021			$	432,619
	Less:	Variable non-contract operating lease components, related to property taxes and insurance, for the twelve months ended June 30, 2021			68,853
	Rent expense for the twelve months ended June 30, 2021			$	363,766
	Total lease cost, per ASC 842, for the twelve months ended June 30, 2020			$	408,583
	Less:	Variable non-contract operating lease components, related to property taxes and insurance, for the twelve months ended June 30, 2020			63,053
	Rent expense for the twelve months ended June 30, 2020			$	345,530

		June 30,
		2021				2020
Selected Balance Sheet Ratios:
Inventory turnover (1)			1.7				1.5
Average inventory per store (in thousands) (2)		$	636			$	632
Accounts payable to inventory (3)			125.7 %				111.6%

			For the Three Months Ended						For the Six Months Ended
			June 30,						June 30,
			2021			2020			2021			2020
Reconciliation of Free Cash Flow (in thousands):
Net cash provided by operating activities			$	822,160		$	1,099,985		$	1,712,832		$	1,559,078
Less:	Capital expenditures			127,728			111,187			222,607			244,471
	Excess tax benefit from share-based compensation payments			10,808			3,080			16,815			6,460
	Investment in tax credit equity investments			1,762			33			1,768			95,292
Free cash flow			$	681,862		$	985,685		$	1,471,642		$	1,212,855

		For the Three Months Ended				For the Six Months Ended						For the Twelve Months Ended
		June 30,				June 30,						June 30,
		2021		2020		2021			2020			2021			2020
Store Count:
Beginning domestic store count		5,660		5,512		5,594			5,439			5,562			5,344
New stores opened		50		50		118			126			159			221
Stores closed		—		—		(2	)		(3	)		(11	)		(3	)
Ending domestic store count		5,710		5,562		5,710			5,562			5,710			5,562
Mexico stores		22		21		22			21			22			21
Ending total store count		5,732		5,583		5,732			5,583			5,732			5,583

		For the Three Months Ended						For the Twelve Months Ended
		June 30,						June 30,
		2021			2020			2021			2020
Store and Team Member Information: (4)
Total employment			79,170			72,877
Square footage (in thousands)			42,714			41,318
Sales per weighted-average square foot (5)		$	80.35		$	74.18		$	295.60		$	262.03
Sales per weighted-average store (in thousands) (6)		$	600		$	551		$	2,202		$	1,940

⁽¹⁾ Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.

⁽²⁾ Calculated as inventory divided by store count at the end of the reported period.

⁽³⁾ Calculated as accounts payable divided by inventory.

⁽⁴⁾ Represents O’Reilly’s U.S. operations only.

⁽⁵⁾ Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions or closures.

⁽⁶⁾ Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions or closures.